Jul 13, 2012

• BNDES’ financing to automaker includes investment in two social projects developed by the Volkswagen Foundation

The board of directors of the Brazilian Development Bank (BNDES) approved financing of R$ 342 million for Volkswagen Brazil. The funds will be earmarked to the development of a subcompact car, a midsize sedan and face lift of other models produced by the automaker in the country.
Volkswagen's investments supported by the BNDES seek to improve existing technologies in vehicles launched in other countries. This applies to the production of the subcompact model, including the nationalization of its parts, and the development of a midsize sedan.

The launch of new models in Brazil by Volkswagen is consistent with the current worldwide automotive situation, as the maturation of the market in developed countries has led automakers to seek new markets with growth potential.
The modernization of other Volkswagen models provides aesthetic changes in front and rear, interior trim and new engines, in line with what will be offered in Europe. The funds will also be used to improve the engineering and design of vehicles, and in differentials that meet consumer preferences.

Social projects - BNDES’ financing to the automaker includes investment in two social projects developed by the Volkswagen Foundation Tailoring the Future and Accelerated Learning. The first project aims to technically train low-income residents in the vicinity of the VW factory in São Bernardo do Campo (State of São Paulo) and São José dos Pinhais (State of Paraná) with workshops in sewing and clothing.

The project was already being held in São Bernardo do Campo, and with the BNDES’ funding it will be expanded to São José dos Pinhais. Participants sew bags and accessories from automotive fabrics and uniforms of employees who would otherwise be discarded. Besides the social focus, the Tailoring the Future project has environmental relevance, by reducing the disposal of materials.

The Accelerated Learning project, held in Resende (State of Rio de Janeiro) and in other municipalities, will be extended to the State of Espírito Santo with the BNDES’ financing. The goal is to reduce school dropout due to overage observed when students are held back a year for several years.

The project involves the continuous training of teachers, technical staff of the municipal Office of Education and school managers, who are will be trained to work specially with students who face learning difficulties with delayed year-age. To support the training of educators, the support teaching material will be offered during training meetings.